Electronic Data Interchange (EDI) & Advanced Integration in SAP

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Electronic Data Interchange (EDI) & Advanced Topics in SAP

How does EDI work in SAP?

Welcome to Think Tree Technologies’ deep dive into EDI and advanced SAP integration topics. Whether you’re new to SAP or looking to level up your integration knowledge, this guide will walk you through the essentials—and beyond—of how EDI works within the SAP ecosystem.

What is EDI in SAP?

If you’ve ever had to exchange business documents electronically—like purchase orders, invoices, or shipping notifications—EDI is the technology behind it. In the SAP world, EDI (Electronic Data Interchange) allows companies to automate document exchange with partners, saving time and reducing errors.

  • EDI Explained Simply: It’s like email, but for machines—structured, automatic, and highly secure.

  • Why Use EDI?: Faster communication, fewer manual errors, and real-time updates with your vendors or customers.

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Electronic Data Interchange (EDI) Overview

The EDI data gets put into an envelope, gets addressed, goes to the “Post Office” (Sterling Commerce) where it gets sorted then delivered to the P.O. mailbox of the recipient (Stanley). A receipt notice is sent and the recipient opens their envelope….

EDI Processing in SAP

What is a High-Level Process Map in SAP EDI?

A High-Level Process Map in the context of SAP EDI (Electronic Data Interchange) is a visual or conceptual overview that outlines the main steps involved in the exchange of data between SAP and external business partners—without diving into technical or system-specific details.

It serves as a blueprint or summary of how EDI communication flows from start to finish within the SAP environment.

EDI Trading Partners

An EDI Trading Partner is a legally independent company with which we exchange electronic data.

Types of Trading Partners:

  • Customers

  • Vendors

  • Banks

  • Affiliates

  • Stanley Third Party Partners (eg. XIGN, Menlo, Expeditors)

Types of Trading Partners

Sterling Commerce

Sterling Commerce is EDI solution. We use them as a managed services provider for most of Stanley’s EDI mapping and data translation as well as for all of Stanley’s EDI Networking.

Sterling Provides:

  • Helpdesk Support

  • Data translation (via Gentran software)

  • Trading partner connectivity (VAN, AS2, & FTP)

  • EDI connection to Stanley (currently via Connect:Direct)

X12 Data

X12 was designed primarily as the standard for EDI transactions in North America.
There are over 300 X12 transaction sets used to handle most facets of business-to-business communications. X12 standards are developed, maintained and published by the Accredited Standards Committee (ASC).

ISA*00* *00* *ZZ*FINDMRO *ZZ*SWEOP32034 *070730*0806*U*00401*000013090*0*P~
GS*PO*FINDMRO*SWEOP32034*20070730*0806*1240*X*004010~
ST*850*2460~
BEG*00*DR*4810497757*1037290980*20070730~
REF*IA*20008200~
REF*IT*8900909066~
REF*CR*UPS#36A74E~
PER*BD*Grainger Sourcing*TE*847-793-6344*FX*847-410-5765*EM*[email protected]~
FOB*CC*DE***FOB~
ITD************2% 30 Days Net 31~
TD5**ZZ*29811**UPS GROUND~
N9*L1**REFER TO MSG SEGMENT~
MSG*PLEASE PRINT CUSTOMER PURCHASE ORDER NUMBER ON PACKING LIST.~
MSG*The Grainger Sourcing quote number to reference is 1037557851~
N1*OB*GRAINGER FINDMRO~
N1*VN*STANLEY-PROTO~
N1*ST*EVERGREEN PACKAGING INC*92*TPSO~
N2*8900909066~
N3*5201 FAIRFIELD ROAD~
N4*PINE BLUFF*AR*716019405*US~
PO1*00001*1*EA*18.85**CB*10617517*VN*FF-66A.1/2X9/16***PL*000000***MG*FF-66A.1/2X9/16~
PID*F****DOUBLE SOCKET WRENCH~
SCH*1*EA***010*20070731~
CTT*1~
AMT*TT*18.85~
SE*25*2460~
GE*1*1240~
IEA*1*000013090~

EDI Inbound/Outbound Documents

Common EDI Documents used by business:

 

Trans. Code Direction Description
204 OB BILL OF LADING (BOL)
810 IB INVOICE
810 OB INVOICE
812 IB CREDIT/DEBIT MEMO
816 IB ORGANIZATIONAL INFO
820 IB PAYMENT ADVICE
820 OB PAYMENT ADVICE
821 IB FINANCIAL INFO REPORTING
824 IB APPLICATION ADVICE
830 IB PLANNING SCHEDULE
850 IB PURCHASE ORDER
850 OB PURCHASE ORDER
850 VMI PURCHASE ORDER
852 IB PRODUCT ACTIVITY DATA
852 OB PRODUCT ACTIVITY DATA
855 IB ORDER RESPONSE

 

Trans. Code Direction Description
855 OB ORDER RESPONSE
855 VMI ORDER RESPONSE
856 IB ADVANCED SHIPPING NOTICE (ASN)
856 OB ADVANCED SHIPPING NOTICE (ASN)
857 VMI SHIPPING/BILLING NOTICE
860 IB ORDER CHANGE
860 OB ORDER CHANGE
861 IB RECEIVING ADVICE (G/R)
861 OB RECEIVING ADVICE
862 IB SHIPPING SCHEDULE
864 IB TEXT MESSAGE
865 OB PO CHANGE ACKNOWLEDGEMENT
869 OB ORDER STATUS INQUIRY
870 OB ORDER STATUS REPORT
997 IB FUNCTIONAL ACKNOWLEDGMENT
997 OB FUNCTIONAL ACKNOWLEDGMENT

IDocs (Inbound Process)

  • EDI is an electronic data interchange. SAP will support EDI through intermediate documents (IDOCS).
    • IDoc (Intermediate Document) is a standard data structure for electronic data interchange (EDI) between application programs written for the SAP business system or between an SAP application and an external program. IDocs serve as the vehicle for data transfer.

What is Message Control (Outbound Process) in the SAP EDI Process?

In SAP, Message Control is a core mechanism used to trigger outbound EDI messages automatically based on specific business events—like creating a sales order, invoice, or delivery. It acts as a link between SAP application documents and EDI processing, ensuring that messages like order confirmations or shipping notifications are sent to trading partners via IDocs.

Benefits of Using Message Control

  • 🔄 Automates EDI workflows
  • 📉 Reduces manual errors
  • 🔗 Standardizes communication with partners
  • 🚀 Speeds up business processes (e.g., order-to-cash)
Message Control (Outbound Process)

Partner Number Resolution

In the EDI X12, there is an ISA ID which identifies the sending partner. The map converts that value into the SAP payer number for that customer. The customer also sends their location number in their EDI data. We couple that value with the payer number and load it into a table in SAP called ED PAR (EDI PARAMETERS). We use the payer number plus the location number (external partner number) to determine the SAP sold-to and ship-to partners.

SAP Business Workplace (Workflow)

SAP Business Workplace can be used to respond to errors and exceptions for EDI documents

There are two main types of errors:

Technical (corrected by IT):

  • Incomplete status updates
  • Doc creation errors
  • Syntax errors

Data (corrected by Customer Service):

  • Invalid item number
  • Duplicate PO number
  • No Customer Account Number set up
    (Ex: New Store Order, New Customer…)

What Are IDocs in SAP? | Intermediate Document Format Explained

IDocs (Intermediate Documents) are a standard data structure used in SAP systems to facilitate data exchange between SAP and non-SAP systems. They play a vital role in SAP EDI (Electronic Data Interchange) and ALE (Application Link Enabling) for seamless business communication and integration.

Key Uses of IDocs in SAP

  • Efficient data transfer between SAP systems via ALE
  • Secure integration with external applications and third-party systems
  • Enable robust EDI connectivity for B2B transactions
  • Involve function modules for both outbound and inbound IDoc processing

Types of Standard SAP IDocs

SAP offers a wide range of standard IDoc types to support various business processes, including

  • Master Data IDocs: e.g., Customer Master (DEBMAS), Vendor Master (CREMAS)
  • Transactional IDocs: e.g., Sales Orders (ORDERS), Deliveries (DELVRY), Shipments
  • Business-Specific IDocs: Designed for unique functions across industries

Custom IDoc in SAP: Overview and Key Features

In SAP, a Custom IDoc (Intermediate Document) is used when the standard IDoc structure doesn’t meet specific business requirements. Custom IDocs give flexibility to handle unique data formats, custom fields, or special processing rules needed during data exchange between systems.

Here’s how Custom IDocs can be implemented and tailored in SAP:

Customize Reduced Message Type IDoc

You can reduce the size of standard IDocs by using only the necessary segments and fields. This is called a reduced message type, and it helps in improving performance and transmitting only relevant data.

Customize Filtering Parts of an IDoc

SAP allows you to filter specific segments or fields of an IDoc during distribution. This ensures that only required data is sent to the receiving system, making the process more efficient and focused.

Customize Conversion Rules for Data in an IDoc

You can set conversion rules to transform or map values inside the IDoc during inbound or outbound processing. For example, converting internal codes to external formats, or adapting date and unit formats as needed.

Develop Extensions to Standard IDocs

When the standard IDoc lacks certain fields or functionality, you can extend the IDoc by adding custom segments. This allows the inclusion of additional business data without altering the standard structure too much.

Develop Completely New IDoc

In some cases, when business needs are highly specific, you can create a completely new custom IDoc. This gives full control over the structure and logic of data exchange but may require significant development effort, including ABAP programming and technical configuration.

What is an Outbound IDoc in SAP?

An Outbound IDoc in SAP is generated when data needs to be sent from the SAP system to an external system or another SAP system. Outbound IDocs are commonly used in scenarios like sending order confirmations, invoices, or shipping details to business partners.

How Outbound IDocs Work:

Usually Triggered by SAP Output Type
Outbound IDocs are often triggered as part of the output process (e.g., when printing, emailing, or electronically sending a document). These outputs are controlled by output types defined in SAP.

Output Proposal is Configurable
You can configure the system to generate an IDoc based on document types, partner roles, and other parameters. For example, an IDoc can be triggered when a sales order is created for a specific customer or vendor.

Standard SAP Functions Populate the IDoc
SAP provides predefined function modules that automatically fill the IDoc structure with the required data from your transaction (like sales order, invoice, or delivery).

Extra Data Can Be Added Using ABAP User-Exits
If you need to include additional or custom data in the outbound IDoc, you can use ABAP user-exits or enhancements. These allow developers to inject custom logic without modifying the standard SAP program.

What is an Inbound IDoc in SAP?

An Inbound IDoc in SAP is used when data is received from an external system (SAP or non-SAP) into the SAP system. It allows the system to automatically post transactions or update master data, based on the incoming data file.

How Outbound IDocs Work:

IDoc File is Sent to SAP from an External Application
An external or internal system (SAP/non-SAP) creates and sends an IDoc file to a specific SAP client or instance. This file contains the structured data to be processed.

SAP Processes the Incoming Data
Once the IDoc is received, SAP uses standard function modules to process the data and post transactions like purchase orders, invoices, and goods receipts, or to update master data.

Error Handling via Workflow or Monitoring Tools
If there are issues during processing (e.g., missing data or validation failures), the errors can be handled by SAP users using IDoc monitoring tools like WE02, WE05, or SAP Workflow. Errors can also be tracked through SAP XI/PI (Exchange Infrastructure/Process Integration) if middleware is involved.

IDOC Status and exception handling

  • The IDOC status tells whether an IDOC is processed successfully and to what extend. Status IDOCs can be sent between systems to change the original IDOC status.
  • Exception handling can be done via monitoring tools and workflow.

Display Idocs with transaction WE05

Transaction: Partner profiles

Key Components of SAP EDI

To get EDI running smoothly in SAP, you’ll come across terms like IDoc, partner profiles, and message types. Here’s what you need to know:

  • IDoc (Intermediate Document): SAP’s standard data format for transferring information.
  • Partner Profiles (WE20): Where you configure your trading partners in SAP.
  • Important EDI Transactions:
    • WE20 (Partner profile)
    • WE19 / BD87 (Inbound Idoc testing)
    • WE05 /WE02 (Getting List of Idocs by various selection parameters)

These tools are the foundation of reliable communication between systems.

Advanced Topics in SAP EDI

Once you’ve mastered the basics, it’s time to explore the more powerful features of EDI in SAP:

  • ALE (Application Link Enabling): Used for distributing master data across systems.
  • Custom IDoc Development: Modify or create new IDoc types to fit your business processes.
  • Error Handling: Monitor failed transmissions and learn how to reprocess them effectively.

Think Tree can help you design and troubleshoot these advanced configurations, ensuring your integrations are stable and scalable.

Complete Video on EDI Processing in SAP